Kalshi, a prediction-market company, is expanding into traditional financial exchange territory by launching futures products whose value moves with inflation, Bloomberg News reported on Oct. 23.
Kalshi plans to launch listed futures contracts in December that track the consumer price index (CPI) and core CPI, an inflation gauge that excludes food and energy prices, the report said. Bloomberg said Kalshi is promoting the products to large banks and hedge funds.
The new contracts are expected to be the only futures directly linked to CPI.
Kalshi plans to use the products to attract macroeconomic investors. They actively trade in the multi-trillion-dollar interest rate and bond futures markets run by CME Group and Intercontinental Exchange (ICE).
Kalshi has also recruited former Barclays trader Michael Ashton, known as the "inflation guy". Ashton will design the contracts and help draw interest from large investment firms.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr